by
Patrick Ogungbola
MD/ CEO, BLUEHEDGE REALTORS
Now, let’s go straight to the subject of discourse: The Story of Samsung. Today, Samsung is a household name in the world of electronics. There’s hardly any household in the world that doesn’t use at least one Samsung product, whether it is refrigerator, television, air conditioner, washing machine, home theatre system, microwave oven, mobile phone, laptop, printer, (you can name it). There’s even a saying that, ‘Virtually all of your wants and needs can be met by Samsung’
Recently, I read the story of this great company and it challenged me, hence the need to share with our esteemed readers.
Samsung started in 1938 as a small trading company located in Su-dong near Daegu city in South Korea. It was founded by Lee Byung-chul. He had only forty employees then and the company’s major business was production and distribution of groceries within the city.
In 1947, as the company began to grow, Lee put up their office in Seoul. He soon started a sugar refinery which also succeeded in a very short span of time. Lee was a very ambitious person and in 1954 built the largest woolen mill in Korea located in the suburbs of Daegu city.
Soon, he had ventured into various other sectors like insurance, retail and securities. He was a firm believer in industrialization and wanted Samsung Group to become the industry leader in almost all the sectors. In the 1960’s the Samsung Group entered the electronics industry confidently.
It was relying on the huge capital that it had at disposal for making new innovative products. Very soon, Samsung was able to release its first product which was a black and white television set. By now it has more than 6 divisions each focusing on individual products like the semiconductor, telecommunications, hardware, etc.
Soon again, it acquired telecommunications giant Hanguk Jeonja Tongsin in 1980. They started producing telephone, fax machines, switchboards with great success and created the base for their large-scale productions in the years to come. In the 1980’s all these production units came under one company named Samsung Electronics Co., Ltd.
With their founder’s death in 1987, they did not lose his philosophy of large-scale expansion and development. They invested millions of dollars in research for better technology for their electronics products. They started building manufacturing plants in places like New York, Texas, London, Portugal, etc.
Samsung also focused on its construction company and was able to grab big projects like building the Petronas Towers in Malaysia, and the world’s tallest building – Burj Khalifa in Dubai. In the 1990’s, they refocused themselves and put electronics, constructions and chemicals on the top of their priority list.
In 1992, it became the sole leader in the production of memory chips in the World and was second behind Intel in the chip-making industry. In 1995, their years of research paid off as they were able to create the first LCD (Liquid Crystal Display) screen. This revolutionised the television hardware industry and brought millions of dollars in profits for Samsung as all the other companies had to pay Samsung royalties to use their technology.
In 2001, their subsidiary Samsung Techwin became supplier for specific engine parts for Boeing 787 Dreamliner and Airbus A380. In the beginning of 2012, it created history when it overtook Nokia as the mobile phone maker with the highest production in the World.
Samsung is the largest conglomerate in South Korea and accounted for nearly 15% of South Korea’s GDP in 2012. Today, it has achieved this amount of success because of the years of patience and dedication it has showed in developing new age technology.
In 2012, its total revenue was nearly $265 billion out of which they earned profits to the extent of $26 billion. It has more than 425,000 employees and is planning to build the largest mobile phone factory in Vietnam’s Nguyen Province which started in 2013. From selling groceries in 1940, Samsung has multiplied and captured large markets throughout its existence in the industry.
Samsung has made the work, play and entertainment experience better for each of its customers. It has been a company that relied on innovation and has become one of the giants in today’s global market.
The above story is very interesting and intriguing, and it is the type everyone will love to be associated with. The story also holds many lessons we can learn from. Below are ten (10) of them:
– Do not despise small beginnings: Every endeavour starts from somewhere (the beginning). Every great product or brand started as an idea in the mind of someone and it becomes a reality by taking action. It is very interesting to know that Samsung started as a mere grocery store, but today, they are a world giant as far as electronics and other products are concerned. Do you have a fantastic idea? Then start! An idea will remain what it is (an idea), until you do something with it (action). Do not procrastinate, start today.
– Consistency: Consistency is a state of steadiness, stability, regularity, predictability, orderliness, and certainty. The story of Samsung shows progression, moving from smaller challenges and conquering, to greater challenges and still conquering. It’s a story of moving from glory to glory. Even the Samsung logo shows consistency – the logo has been used for several years. Our life’s goal, ambition and purpose must be in line with what we profess. What we do on a daily basis, year in, year out is a microcosm of our life. Each year must be an improvement over the previous.
– Dedication: Webster dictionary defines dedication as a feeling of very strong support for or loyalty to someone or something. It was reported that the death of the founder of Samsung, Lee Byung-Chul in 1987 didn’t have a negative impact on the operation and performance of the Samsung Corporation. Many businesses die once the founder dies, but the opposite hold for Samsung. As a matter of fact, the death of the founder led to the ‘birth’ of Samsung’s global rapid expansion’. We must give our very best to our work. Our attitude to work must be such that even work itself must know we are working.
– Investment: From the story, it was reported that the Samsung Group invests heavily in research and development in order to break new grounds. No doubt, it is investment today that guarantees dividend tomorrow. Invest in yourself, in your business, in your talent, in your family, in your gift, in your future. It is wisdom to separate bread from seed; bread is for eating while seed is for sowing to reap future harvest (benefits).
– Change with change: The Samsung story also shows that they are not stagnant (they didn’t remain in the same position). Though the company was established during the agrarian economy where farming was the major business of the era. During the period, they took maximum advantage through the production and distribution of groceries. However, as time changed towards industrialisation and technology, they changed along. As humans, it is very important to know when to leave our old ways and move forward. We don’t need God to always remind us that ‘we have stayed long enough on this mountain; please move on – Deuteronomy 1:6’. Life is in phases, we must know when to leave one phase and move on to the next phase. Remember, the only constant thing in life is change.
– Re-Invention, Innovation and Improvement: Samsung is synonymous with innovation and reinvention. The Samsung product of this year is not the same as that of last year. As a matter of fact, do not be too surprised to know that last year’s products have been phased out as there are now better and improved ones. Nothing today is in its final state. The best is yet to come. Interestingly too, the most expensive gadgets of today may become children toys in the years to come. We must continuously improve and think of better ways to do things. It was Albert Einstein that said, ‘The definition of insanity is doing the same thing over and over again and expecting different results.
– Possibility Mentality: The Samsung Company has demystified many things people thought were not possible. In life, nothing is impossible. Impossibility is the word used for what has not been attempted or tried. Think out-of-the-box, oh sorry, break the box because the box itself may be a limitation. Remember this, all things are possible to them that believe.
– Competition can be made irrelevant: Before Samsung took over the market, Nokia used to be the market leader in the mobile phone technology. Samsung kept on improving in its game without fear or intimidation from the competitors such as Nokia. Today, Nokia has gone under, while Samsung is still waxing stronger and stronger. The lesson here is that you should never ever be intimidated by your competitors. As a matter of fact, you can beat the competition hands down by improving on your products or services being rendered.
– Paying attention to details: Steve Jobs once said that, ‘Details matter; it’s worth waiting to get it right’. My experience in the real estate business is that house buyers will always complain about the little details that were not attended to, without making mention of other good and beautiful things in the house. So also it is in life. Tom Peters, the author of ‘The Little Big Things’ advised that we pay attention to the little things that have enormous impact. As a matter of fact, pay adequate attention to everything. Be a perfectionist, because everything matters. The things people say doesn’t matter usually become matters arising.
As usual, we want to remind you that we care so much about you, and that when it comes to your real estate investment, we are always here to give you the very best service you can never get elsewhere. That is our promise, and will always be.We wish you the very best in the month of August 2017.Thank you.
